Method and system for conducting secure transactions with credit cards using a monitoring device

Abstract

A system is presented for performing secure transactions, the system including a payment member, such as a payment card, a monitoring device monitoring that the payment member is physically near the monitoring device and a portable communication device, such as a cell phone, used to communicate with a credit card server. The monitoring device checks to see if it can establish a close range communication link with the payment member and the sends information to the credit card server permitting transactions to be completed. The customer associated with and carrying the payment member, the monitoring device and the portable communication device is authenticated using a biometric sensor in the monitoring device.

Description

RELATED APPLICATIONS [0001]This application claims priority to U.S. Provisional Applications Ser. No. 61 / 757,789 filed Jan. 29, 2013 and Ser. No. 61 / 839,958 filed Jun. 27, 2013, both incorporated herein by reference.BACKGROUND OF THE INVENTION[0002]A. Field of Invention[0003]This invention pertains to a method and system for performing secure transactions either in a regular or virtual store. Before a transaction for a product or service is approved, a check is performed to determine if a payment instrument (that could be a credit card or a portable device) is in close physical proximity to a monitoring device and otherwise the transaction is not permitted.[0004]B. Description of the Prior Art[0005]The present invention involves a method and system for conducting transactions, e.g., buying products or services, with a credit card, mobile device, or other similar means. The term ‘credit card’ is used generically to cover various different cards that can be used to make payments, incl...

AI Technical Summary

Benefits of technology

The present system includes a payment member, a monitoring device, and a communication device. Before transactions are completed, the monitoring device checks if the payment member and communication device are physical close to the monitoring device or not. This is done by using a limited communication link, such as Bluetooth or NFC. The system also includes a biometric sensor for authenticating the customer. The communication device exchanges information during the transaction process with remote servers, such as a credit card server. The system can be used to perform transactions in real stores or virtual stores over the Internet. Once a transaction is authorized, it may be completed using conventional techniques, e.g., by scanning the payment member or using an NFC protocol. In an alternate embodiment of the invention, either the payment member or the monitoring device may be incorporated into the communication device.

Problems solved by technology

Of course, online stores can only accept some kind of credit card as a payment mean.

Unfortunately, fraudulent transactions involving credit cards have also become very common.

While the banks, credit card companies, and police departments are aware of these activities, due to lack of man power and other factors, there is very little effort being made to prevent such activities.

Typically, merchants may be reimbursed for loses due to credit card fraud by insurance companies, but are still negatively affected by such fraud because of the manpower required to handle credit card fraud, irate customers, loss to their reputation, etc.

In addition, although the liability of customers is limited, at least in the United States by law, a customer who is victim of fraud is still inconvenienced by the paper work required to correct such matters, possible refusal of goods or services, especially if the customer is far from home, as well as injury to his / her reputation and possible negative effects on his credit scores.

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